TORONTO, June 8 (Reuters) - The Canadian dollar fell against the greenback on Monday morning as global equities dropped amid rising U.S. treasury yields and the price of oil fell on a stronger U.S. dollar.
World stocks fell on Monday as yields on 10-year U.S. Treasuries hit a seven-month high and the U.S. dollar strengthened on speculation the Federal Reserve may have to tighten interest rates sooner than anticipated. [MKTS/GLOB]
U.S. stock index futures pointed down about 1 percent on Monday after three weeks of gains. [ID:nN08303232]
Friday's stronger-than-expected U.S. jobs data helped to fuel optimism about economic recovery [ID:nN05274048], said George Davis, chief technical strategist at RBC Capital Markets.
"A lot of people are looking at a recovery in the employment picture as being essential for any type of sustained recovery in the U.S. economy because it's so dependent on the consumer," Davis said. "That, I think, is what has been filtered into expectations the market is more firmly anchored on a potential recovery scenario."
In turn, the jobs data have helped to fuel speculation the U.S. Federal Reserve may increase interest rates sooner than what was priced into the curve, pushing up yields and boosting the U.S. currency, he added.
At 7:55 a.m. (1155 GMT), the Canadian currency was at C$1.1218 to the U.S. dollar, or 89.14 U.S. cents, down from C$1.1190 to the U.S. dollar, or 89.37 U.S. cents at Friday's session close.
Also weighing on the Canadian unit was the price of oil CLc1, which fell towards $67 a barrel on Monday as a stronger dollar prompted a retreat from a high above $70 hit last week. [ID:nSP162458]
Canadian bond prices were mixed, following along U.S. Treasuries where the two-year U.S. Treasury yields hit seven -month highs in Europe on Monday.[ID:nL8475367] (Reporting by Jennifer Kwan; Editing by Padraic Cassidy)